EtherDelta is a dedicated crypto exchange which is known for trading Ethereum (ETH) as well as ERC-20 tokens.
For crypto enthusiasts around the world, EtherDelta exchange is a great option as you can trade almost any token here which is compatible with the Ethereum network. In a nutshell, EtherDelta is running its operations as a decentralized crypto exchange.
EtherDelta located in Chicago (United States)
The exchange is a marketplace for major cryptos which specifically handles trades associated with trading pairs of Ethereum (ETH) and Ethereum power smart contracts. The smart contracts are used for the purpose of running the exchange as well as performing vital functions such as withdrawals, deposits, general trading, integration and more. Just after the ICOs, the exchange went on garnering a lot of success in the early days in lieu of exclusive access to ERC-20 tokens. One should note that potential traders used to sell and purchase the tokens on EtherDelta before they were listed on any other crypto exchange.
History on EtherDelta
Until the end of the fiscal year 2017, EtherDelta remained a preferred choice for traders to trade ERC-20 tokens. The exchange was generating $10 million USD in daily trading volumes. You should know that there are more than 241 crypto coins and tokens available on EtherDelta. The peer-to-peer exchange is known for the listing of Ethereum (ETH) based tokens as soon as they launch. However, there are reports where the users found EtherDelta platform a bit uneasy due to the factors like slow transactions, ordinary user-interface etc. Since the exchange is based on a P2P model and no single person is in control, the exchange never experienced failure in its lifetime.
Before being listed on major platforms like Binance or Bittrex, just after their Initial Coin Offering, ERC-20 tokens are listed on EtherDelta. Not only EtherDelta is a great choice when you missed an ICO and looking forward to purchasing the tokens, EtherDelta is the only choice in the current marketplace. Also, there was a revamp of the management team at EtherDelta recently and it was kept anonymous. This lead to a huge speculation in the market. The lack of trust in the new management has led to the initialization of ForkDelta project which focuses on running the EtherDelta with old methodologies and practises. The exchange is often compared with other mainstream exchanges on the basis of control. Users which are associated with EtherDelta have more control. Just after the creation of an account, the user can get access to major features like price chart, order book, wallet and much more.
What comes as an important fact is that users of EtherDelta can make new accounts or import the current account with added ease. However, in that case, the customer will be liable for the actions, losses, private keys and funds. One should take utmost care while trading on this platform because the complicated and decentralized nature might lead to loss of coins due to user mistakes. EtherDelta has around the clock support from the countries such as USA, Canada, Australia as well as the European Union. Talking about the transaction fees, EtherDelta is some of the lowest fee structures in the world. As a user, whenever you execute a trade, you’ll have to pay a fee of 0.03%.
Zack Coburn is the founder of EtherDelta. He is a dedicated software developer and maintains a profile on GitHub as well. Tina Trinh is a professional coder and one of the makers of the EtherDelta. However, there is not much information available about the old management after the ForkDelta management revamp.
How to trade on EtherDelta?
When it comes to trading on EtherDelta, you’ll be required to be in possession of a working account as well as a wallet. You can make use of MyEtherWallet (MEW) for instance, the wallet is popular and is free too. We’ll talk about account creation and wallet set-up in the later sections. Let’s move forward with how to select the token which you wish to buy or sell? Now, let’s say that you have a working and funded EtherDelta account, you can stroll over to ‘CRED’ option in the upper-middle of the screen. Once you click CRED, an array of tokens will appear, you can select the token from here. Now, you have two methods to execute the buy order.
The first method involves a manual creation of the order by filling-up of details like how many coins or tokens you’re looking forward to purchasing, the desired price and also the total number of Ethereum (ETH) tokens that might be used. You’re required to input this information under the ‘New Order’ section. Upon the fulfilment of the required details, you can simply click on the Buy button and the order will be put on the log under the ‘Buy Orders’ option. On the other hand, the second method is relatively easier and it involves a direct purchase from a sell order under the order book. The order book is usually created by other users who’re looking forward to selling their tokens.
Now, you might be wondering what really is an order book? In a nutshell, the order book is an array of buy and sell orders which are awaiting a suitable buyer. Users can observe the sell orders listed in the red colour. The sell orders are listed in a decreasing amount of fashion, most expensive at the top. Further, the buy orders can be seen in the green colour. If you’re looking forward to buying tokens, this is your pick. When the time comes to buy from the order book, let’s say you wish to purchase the cheapest token. In that case, you can simply click on the lowest sell order which can be seen in the yellow box. Crypto enthusiasts must take a note that if their transactions are too slow and are pending over a period of time, they can consider ‘Gas Price’. Now, the gas price is nothing but the fee amount a user increases for the purpose of speeding up a transaction.
The higher the gas amount, the faster your transaction will be executed. As a matter of fact, Ethereum network can sometimes be clogged-up, as a user you can increase the default gas price on the EtherDelta and can get access to faster transactions. Stressing upon the execution of sell orders, again, you can create a new order by filling details like the Ethereum (ETH) tokens you wish to receive, how many coins you wish to sell and at what desired price? This can be executed under the ‘New Order’ section. Again, you can refer to the order book and can look for buying orders created by others.
Currently there are no official smartphone applications available for users who wish to access to EtherDelta from their phones.
Create an account on EtherDelta
Before we stroll over to creating an account on EtherDelta, you should create a wallet within the portal. One should take note that both, the wallet as well as the generated private key will be stored in the browser itself. For this, you’re required to go to the ‘Select Account’ section. Users can find the same on the upper-right corners of the website and there, they can click on ‘New Account’.Once you’re through, you’ll see a pop-up message which will provide you with your public key at the top of the screen. You can see the private key at the bottom. One should take utmost importance when it comes to recording the keys, especially the private one.
It is always advised to write down the keys on a piece of paper and store the same somewhere safe. Also, you can copy the duo to a wordpad or notepad file and can save the document on an external storage. Transferring of Ethereum (ETH) to your EtherDelta public address is the next step. When you stroll over to ‘Send Ether & Tokens’ section, you’ll have to provide the receiver’s address, amount as well as the Gas limit. After that, a user can generate the transaction. You should take note that margin trading is next to impossible at EtherDelta due to the presence of dedicated complex systems.
Since EtherDelta is a decentralized cryptocurrency exchange, there is no KYC. Hence, there is no invasion of privacy.
The decentralized appeal of EtherDelta has surely paved ways for advanced security. Smart contracts, personal wallet integration and more, makes EtherDelta one of the most secure exchanges out there. If you don’t have access to an address’s private key, you can’t just access the funds associated with the address in any manner. Thus we can say no individual can gain access to your account, unlike Bittrex or Binance. In lieu of the fact that EtherDelta doesn’t hold funds for the users, users only hold their funds in the form of smart contracts.
Possible problems with EtherDelta
In December of last year, a considerable proportion of people sent their tokens to hackers instead of the EtherDelta exchange. Although the portal was not hacked, hackers replaced the official portal with a fake domain name. As high as over 308 Ethereum (ETH) coins were lost in the process. It can be said that these types of attacks are far more dangerous and easy to execute than the common phishing attacks. Users who visited the fake site were presented with a partial convincing version of EtherDelta. The exchange further went on confirming the attack on their Twitter page and advised users to be cautious while entering the URL.
Conclusion on EtherDelta’s review
With customer service help offered in the form of a drop-down menu with resources rather than FAQ sections, EtherDelta customer support lacks response. The website user-interface is not friendly, new users might encounter problems in the beginning. Also, there’s a downside to the chat service provided by the EtherDelta, the chat rooms are public and hence, questions, as well as relevant queries, get drowned out by other posts. Although the EtherDelta community is small, the exchange’s consistent users are loyal. Navigating from smart contracts to learning how to really transfer the funds, EtherDelta can be a bit cumbersome for many. EtherDelta is one of the few exchanges in the world that doesn’t support Bitcoin (BTC) and trading pairs are also limited to just ERC-20 tokens.